Key Points
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The One, Big, Beautiful Bill is now law, and it includes changes to Social Security.
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Older adults are set to receive a large tax break, saving many seniors thousands of dollars per year.
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However, it also comes with a major drawback that could hurt retirees.
President Trump’s “One, Big, Beautiful Bill” passed through Congress last week and was signed into law on Friday, imposing sweeping new changes that will affect millions of Americans.
The bill includes changes to Social Security, such as tax breaks that could save seniors money. But there’s a hidden downside that could hurt retirees down the road. Here’s what you need to know about how the new laws could affect your retirement.
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The good news: Tax savings for seniors
During his campaign, Trump promised to eliminate federal taxes on Social Security benefits. While that measure was cut from the final bill, the majority of seniors are still set to receive a tax break.
Beginning this year, those 65 and older can receive an additional $6,000 tax deduction (or $12,000 for married couples filing jointly) on top of the standard deduction.
A report from the White House’s Council of Economic Advisers claims that under the bill, “51.4 million seniors — 88% of all seniors receiving Social Security income — will pay no tax on their Social Security.” While that wording is somewhat misleading (again, federal taxes have not been eliminated), the new deduction can reduce taxable income enough that the majority of seniors will not owe federal taxes.
However, there are a couple of caveats. For one, this deduction is only temporary and is set to expire in tax year 2028. Second, there are income limits. The deduction phases out at $75,000 per year for individual filers and $150,000 per year for joint filers. It drops to zero at incomes of $175,000 per year and $250,000 per year.
The bad news: This measure could hurt seniors in the coming years
This deduction is not intended to help seniors long-term. Once it expires in 2028, retirees can expect their tax bill to increase again. But even more worrying is the impact this tax cut might have on Social Security’s trust funds.
Social Security is funded primarily through income taxes. That includes payroll taxes paid by current workers and taxes on Social Security benefits themselves. However, the program has been struggling with a cash shortage for years, as it’s paid out more in benefits than it’s received from taxes. As a result, the Social Security Administration (SSA) has needed to pull money from its trust funds to cover the deficit.
According to the SSA’s latest estimates from June 2025, the combined trust funds covering retirement and disability benefits are expected to be depleted by 2034. The report also revealed that if nothing changes between now and 2034, Social Security’s income sources will only be enough to cover around 81% of scheduled benefits — potentially resulting in benefit cuts of nearly 20%.
Keep in mind that those estimates were done before the bill passed. While these tax deductions can provide temporary relief for retirees, they will also put more strain on Social Security’s already struggling budget. With less income from taxes, the SSA will probably need to pull even more from the trust funds, causing them to run out faster than expected.
Tax deductions are good news in the short term, but they could sting retirees in the coming decade. By staying aware of how this new tax measure will affect you, it will be easier to prepare your budget accordingly.
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There is no trust fund with money put away for a future day like a lock box or savings account. There are a series of I-owe you’s in the treasury that we put in for all the years that social security ran surpluses and the government at the time spent on other things. So when the I-owe-you’s come due the money will have to come out of the general fund I.e. our taxes.
yes our generation has funded vietnam war-politicians raided social security fund 3 trillion —clinton raided it—problem is they could not leave the money alone-in the 1990’s they said the same thing money would be gone by 2035—all the variables like people dying that worked all their lives–never got social security-now they are putting babies on social security–all these people like obama aunt-never paid a dime into it—-it is only for people that paid into it —so corrupt —has been democrats doing this
Yes, that and the fact that there are dead people, illegals and 150-300 year olds that receive benefits too. That must be cleared up now, completely cleared up.
Here’s an idea how about taking some of the Tariff Money and put it in the S>S>trust fund
the Government has perfected its crooked version of “Uncle Sam’sThree Point Monte”—- there has never been a pea
under any of the walnut shells folks!—– we’re the Government,and we are here to help you. Good People,make sure
you enter the lottery to own a piece of the Brooklyn Bridge.
SS began going into the red during the Clinton years. The supposed “lock box” Al Gore referred to had a shoe string for a lock and it immediately became the DC slush fund to pay off whomever they needed to for whatever it was needed for. Now the answer to “balancing” the deficit is to do everything they can to shorten our life span via Medicare squeeze (treatment denials) which will reduce the draw sooner of each recipient. That is the real “shell game.”
You forgot about the covid murder shots.
They have killed quite a few . leading to earlier deaths, thereby reducing the number of people on SS – all according to plan IMO.
It’s obvious that a system that pays out to people who never put into it ( illegal immigrants, people with marginal disorders like Anxiety, self-inflicted health disorders, made-up disorders, etc…) Some of this is real, I get it, but I believe the abuse of the system is what has caused the problem. I don’t expect we will ever get it fixed, and the SS will go away for everyone, even the people who paid in their whole lives. Just be Happy for those that got something out of it and really happy for those that got away with it without deserving it. I know some and so do you, if your honest.
“Keep in mind that those estimates were done before the bill passed. ”
This is fear mongering by the perpetrator of this article. The Feds have stolen from this account for as long as I have been alive. Donald Trump said it will remain solvent for many years to come. Did not read that in this squib.
You have NO credibility here.
This article is obviously “Long Form” click bait !!!
Legal action must be taken against politicians and agency staff that approved and or went along with anyone that should NOT have received any benefits e.g. illegal immigrants. Congress is corrupt, there must be guardrails in place to mitigate catastrophic issues like this from happening. Our contributions have been MISHANDLED, those elected or non-elected responsible for the shortfall must be held liable, personally & financially. Recoup $$ from countries receiving these funds from illegal recipients wiring OUR MONEY TO THEIR COUNTRIES.
So true! It may be that less people aren’t working to add to ss but majority is allowing illegals to steal our ss money!
i agree w/Dawn Carey. every thief politician who stole our ss $ should be arrested & all assets seized to be repaid into ss. their assets $ must cover all $ given to illegal alien invaders & other moochers. usaid: same repayment to citizens.
keep ss sacrosanct & out of reach of politicians!
It would help the funding quite a lot if the cap on amount that is taxed by FICA was removed so S/S was taking in money for ALL income that is currently taxed up to as the case with Medicare.
For 2025, the maximum amount of earnings subject to Social Security tax is $176,100. Earnings above this amount are not taxed for Social Security purposes, but all earnings are subject to Medicare tax without a cap.
Agreed- But on the condition that corruption is substantially reduced and payments to non-contributors are stopped. The trust fund needs to be a literal separate account that Congress is never allowed to otuch regardless of “emergencies” as politicians will always claim something is an emergency (like the recent claim about Obamacare subsidies disappearing being an emergency).
Stop all politicians,mostly demonrats, from stealing honest hardworking taxpayers SS giving to illegals. Every day u hear of crooks stealing ss numbers or making phony ss cards to get free money from government. Put more fbi and undercover law enforcement to catch these thieves and send them all back to wherever they came from! Then put the demonrat congress thieves in jail too!
This deduction does not affect funding of SS in the future. Funding comes from payroll deductions of employees and employers along with self employed individuals, not from Income tax receipts.
Also, as I have just learned, ss funding comes from federal tax taken out of monthly payments. As an example, here is my own tax for 2026:
“Voluntary federal tax withholding
If you did not elect voluntary tax withholding as of November 20, 2025, we show $0.00: $398.30”
Notice the word “voluntary” Don’t know what that means anymore.
voluntary just means you choose to have tax $ withheld from your monthly social security. if you choose not to withhold, you may still owe it at tax time
I’m tired of the Government criminals and IRS theivery department constantly keeping Americans who paid into the corrupt income tax system, reluctantly, in a state of FUD. FIX THE DAMN PROBLEM or WE THE PEOPLE will hold you all accountable. We all know where the money went, to fund the covert systematic destruction of the USA from within by the Masons, Rothschilds, Soros, British Jekyll Island fraudsters, with the help of fraudulently unelected and installed politicians, who are all guilty of colluding to deceive the American people and turn them into debt slaves, with the help of many other corrupt organizations, and many low-level local cowards, and order followers in positions of power and authority who eagerly comply with all forms of tyrannical oppression and propaganda to deceive the American people. This is especially true with the climate change hoax, as we see the Brits and cowardly police order followers are enforcing. They are all such a disgrace, and especially for arresting Christian street preachers, to appease the radical Islamists who flooded Europe and the USA for the purpose of causing chaos, division, and war, because these radical Islamists openly admit they are planning to stab Christians in the heart, literally. I suppose that is why Obama illegally smuggled members of the Muslim Brotherhood into the USA, in addition to thousands of armored United Nations vehicles, during JADE HELM 2015 (aka Master the Human Domain, aka SABOTAGE), along with stacking millions of plastic coffins in a remote Georgia location, in preparation for executing their treasonous 16 year plan, which fell apart when the HRC election fraud FAILED. When that didn’t work they created Event 201, as Fauci signaled to his Masonic masters on public television by awkwardly tucking his hand under the lapel of his suit coat, in a horizontal position, indicating all systems for rolling out the four bio-weapons were a GO, and they all came with sufficient plausible deniability. They will all answer to our Lord and Savior, Jesus Christ. #NCSWIC #Q
WHAT IS THE MINIUME SS# FOR 2026
The reason why social security has been struggling for years is because the government keep robbing the the fund to use for other things. That money that we have put in our whole lives has been stolen to use to cover projects that have gone into spending bills.
The statement “Social Security is funded primarily through income taxes.” is misleading. It is funded by payroll taxes paid by current workers, their employers, and taxes on Social Security benefits.